January 10th, 2023
There are over 14,000 registered Co-operatives and more than 22,000 Savings and Credit Co-Operative Societies (SACCOs) in Kenya with 18 plus million members. Most of these entities have suffered from a myriad of problems arising from poor risk management, leading to huge financial losses. Some of these losses could have been avoided through professional advice from financial, investment, and insurance experts.
With proper insurance solutions, Cooperatives will be in a better position to mitigate some of the challenges that they face which negatively impact their balance sheet. SACCOs and Cooperatives handle a lot of cash from members, and this presents risks of theft, forgery, fraudulent transactions, and general infidelity of employees. The foregoing will apply where stocks are involved. However, with proper insurance and risk management practices in place, most of these risks can be eliminated or significantly reduced.